A 73-year-old Toronto man is facing multiple charges for allegedly selling fake auto insurance, resulting in claim payouts worth more than $1 million, police said Tuesday.
It is alleged the suspect was selling counterfeit insurance cards known as "pink slips" that are proof of valid insurance.
"He collected instalments, mostly cash, from his victims over a period of time," said Det. Robert Ermacora of the financial crimes unit of Toronto police.
He said there were more than 100 alleged victims who bought the fake cards since 2013 and police had spoken to only a small fraction of them.
Ermacora warned that those who drive vehicles without valid insurance are subject to enforcement by police officers.
"If they get stopped and it is discovered that they don't have insurance on those vehicles, they will be facing a first-time fine of $5,000," he said.
Alexandr Chertin is charged with two counts each of defrauding the public over $5,000, fraud over $5,000 and uttering a forged document.
Police believe Chertin, who is not a licensed broker or affiliated with any company, sold insurance at discounted rates.
The Insurance Bureau of Canada said the monthly payments were often allegedly collected at a local coffee shop.
"If someone offers you insurance in a doughnut shop, rather than in their office, you really have to question the legitimacy of the transaction," said Rick Dubin, vice-president of investigative services at the bureau.
The IBC identified the suspect as an auto repair facility principal.
It alleged that in an apparent effort to keep the false policies from coming to light, in some cases vehicle collision damage was reportedly repaired at the suspect's garage.
"Several insurance companies involved have been liable and have paid out, currently to date, over $1 million in claims for people that believed they were insured through several insurance companies and they were not," said Ermacora.
It is believed the cash was paid out by the other drivers' insurance companies.
Ermacora urged people who have purchased fake insurance from the suspect to stop operating their vehicles and to contact police immediately.
Chertin was released on $7,500 bail and is due back in court Nov. 25.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.